John Smith downloaded the Uber ride-share app and attempted to request a ride in New York City. His requested ride did not appear after the
estimated 10-minute arrival time elapsed, and Smith was unsuccessful in his attempts to contact the driver. Smith received a notification from Uber
that he would be charged $10 for canceling his ride, but he denies canceling. Smith later experienced similar incidents in Toronto and Irvine,
California. Smith sued Uber on behalf of himself and a similarly situated class of Uber users, alleging that Uber purposely was generating million of
dollars in cancelation fees through deceptive, false, misleading, and illusory business policies and practices.
According to the testimony of the Uber engineer manager responsible for overseeing the rider sign-up and registration process, which was given
during a pretrial hearing, no Uber account could be created unless the user navigated through the screen containing a notice stating. "By creating an
Uber account, you agree to the Terms & Conditions and Privacy Policy. The same screen required the new registrant to click "DONE" in order to
create an account. The phrase "Terms & Conditions and Privacy Policy was displayed in a clickable box that linked a user to the pages containing the
then current terms and conditions was displayed in a clickable box that linked a user to the pages containing the then-current terms and conditions
and privacy policies. The Terms & Conditions included the following provision:
ARBITRATION. You agree that any dispute, claim or controversy arising out of or relating to these Terms or the breach, termination, enforcement,
interpretation or validity thereof or the use of the Services (collectively, "Disputes") will be settled by binding arbitration between you and Uber,
except that each party retains the right to bring an individual action in small claims court and the right to seek injunctive or other equitable relief in a
court of competent jurisdiction to prevent the actual or threatened infringement, misappropriation or violation of a party's copyrights, trademarks,
trade secrets, patents or other intellectual property rights. You acknowledge and agree that you and Uber are each waiving the right to a trial by jury
or to participate as a plaintiff or class or any purported class or representative proceeding. Further, unless both you and Uber otherwise agree in
writing, the arbitrator may not consolidate more than one person's claims and may not otherwise preside over any form of any class or representative
proceeding.
The Uber engineer manager presented evident showing that Smith had registered and clicked "DONE," indicating his agreement to the Terms &
Conditions. Thus, Uber filed a motion to compel arbitration. What are the arguments for both Uber and Smith and will Uber's Motion to Compel
Arbitration be granted or denied by the Court?